ASML delivers record performance with EUV systems leading the way

ByInvestment Club

Overview

ASML delivered strong financial performance in Q4 2024, reporting total net sales of €9.26bn, a gross margin of 51.7%, and a net income of €2.69bn. The quarter was highlighted by €7.1bn in net bookings, driven by continued demand for EUV systems. For the full year, ASML achieved total net sales of €28.26bn, maintaining a gross margin of 51.3% and net income of €7.57bn.

Looking ahead, the company projects steady growth in 2025, with revenue expectations between €30bn and €35bn, supported by ongoing advancements in semiconductor technology.

Christophe Fouquet, ASML’s President and CEO, highlighted: “Our fourth-quarter was a record in terms of revenue, driven by system upgrades and strong demand for our High NA EUV systems. As we look ahead, the growth in artificial intelligence remains the key driver for our industry, creating both opportunities and risks. We remain focused on innovation and meeting customer needs to navigate these dynamics.”

Q4 2024 vs. Q4 2023:

  • Total net sales increased to €9.26bn (+24% YoY), supported by additional system upgrades and revenue recognition on two High NA EUV systems.
  • Net income rose to €2.69bn (+30% vs. 2023), reflecting robust gross margins and increased system sales.
  • Gross margin for Q4 2024 was 51.7% (vs. 50.8% in Q4 2023), attributed to efficiency improvements and favorable product mix.
  • Net bookings more than doubled to a value of €7.1bn, of which €3.0bn was attributed to EUV systems, showcasing continued demand for cutting-edge lithography tools.
  • Basic EPS also experienced a significant increase, reaching a value of €6.85 (+30% YoY).
  • New lithography systems sold have reached a threshold of 119 units in Q4 2024 (vs. 106 units in Q4 2023), reflecting strong customer investments in advanced semiconductor manufacturing.

Full-Year 2024 highlights:

  • Total net sales were still on an upward trend, reaching €28.26bn (+3% YoY), supported by steady demand for both new and refurbished systems.
    • Installed Base Management sales was €6.5bn (+16% YoY), highlighting the value of ASML’s service and maintenance offerings.
  • Net income decreased slightly compared to last year, to a value of €7.57bn (-3% vs. 2023), but reflecting consistent profitability across product lines.
  • Basic EPS experienced the same percentage change, reaching a value of €19.25 (vs. €19.91 for FY2023).
  • Gross margin for FY2024 was 51.3% (consistent with the value in FY2023), maintained by operational efficiency and strategic pricing.
  • Net bookings were on a slightly downward trend, reaching €18.9bn (-6% vs. 2023).
  • Cash and investments grew to €12.7bn by year-end (+82% YoY), reflecting strong free cash flow generation.
  • ASML intends to declare a total dividend for the year 2024 of €6.40 per ordinary share, which is a 4.9% increase compared to 2023.

ASML’s 2025 outlook reflects confidence in sustained growth within the semiconductor market, with projected revenue between €30bn and €35bn and a gross margin expected to range between 51% and 53%, supported by operational efficiency. For Q1 2025, ASML anticipates revenue of €7.5bn to €8.0bn, with a gross margin between 52% and 53%. The company plans to invest heavily in innovation, with R&D costs estimated at €1.14bn and SG&A expenses at €290m in the first quarter, aligning with its strategy to advance semiconductor technology.

Author: Ionuț-Adrian Lazar

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